What is a short-term high-Profit Investment?
A secure high-yield investment refers to a financial product that may not inherently be risk-free but is managed in a way that continuously mitigates risk. The objective for investors is to preserve their initial capital while generating attractive returns over a medium to long-term horizon, depending on the investment timeframe.
Investing in currencies in 2025 could be a viable solution, as we will explore in this article. Before diving in, it’s crucial to understand key investment categories. While these concepts may be familiar to some, they are essential for those looking to enhance their financial knowledge and learn how to optimize their portfolio.
Secure high-yield investments are typically classified as low-risk or controlled-risk investments, with annual returns often capped at around 4%. However, such returns fail to outpace post-COVID-19 inflation. These are often savings plans that offer partial liquidity and allow investors to recover their initial capital regardless of market conditions.
Let’s take real estate as an example—a popular choice among French investors. Despite being perceived as secure, real estate is not a short-term high-yield investment. Since early 2022, particularly in Paris, the real estate market has become the opposite of a safe and profitable investment. Prices dropped by an average of 10% in Paris in 2023 (source: Notaires de France), meaning that an investor who purchased in 2018 may not recover their initial capital today. Inflation further erodes capital value, making this effect less obvious but very real.
To summarize, real estate prices fell by 2.1% during the first nine months of 2022, while inflation in France—among the lowest in Europe—reached 5.8%. This brings the cumulative loss in property value for 2022 to 7.9%.
In contrast, investments like Phocus1 operate exclusively in high-yield short-term markets, trading top-tier currency pairs such as the U.S. dollar (USD), Canadian dollar (CAD), Australian dollar (AUD), Japanese yen (JPY), British pound (GBP), and Swiss franc (CHF). Phocus1’s performance engine relies on three risk management systems, designed to maximize profitability while maintaining full liquidity. This flexibility offers investors instant access to their funds, making it a top-tier solution for short-term, high-yield investments.
Phocus1 ranks among the best short-term investment options, providing the benefits of compound interest with tax efficiency. Based on past performance, invested capital can double in six years. However, we emphasize that past performance is not a reliable indicator of future results.
Currencies that are less exposed to inflation tend to appreciate over time, offering a defensive position to investors. Secure high-yield investments fall under the category of performance-driven financial products, incorporating risk control strategies to achieve long-term growth.
Phocus1 delivers outstanding returns in the currency market, with monthly profitability ranging from 0.5% to 2%. During periods of geopolitical tension and market volatility, these returns can become even more significant. For instance, in September 2022, the British pound experienced a 15% drop within just two weeks.
Through our alternative investment fund in Luxembourg, discover how to invest in currencies in 2025 and achieve high-yield performance in a rapidly evolving global economy.
Why invest in an alternative investment fund in Luxembourg?
Luxembourg is recognized as one of the world’s most attractive financial centers, offering a favorable legal and tax framework tailored to international investors. This small nation, with stable and sustained economic growth for over two decades, is now one of the wealthiest countries in Europe. Its EU-compliant legislation provides a secure and transparent environment, making it a preferred haven for high-net-worth investors.
Investing in Luxembourg is a strategic opportunity to secure and diversify your assets while benefiting from optimized taxation and strong economic stability, unlike countries facing concerning debt levels. In 2025, Luxembourg’s public debt stands at only 27.5% of GDP, compared to 130% in France and 155% in Italy, offering exceptional financial resilience.
If you have liquid assets to invest and wish to protect your capital internationally, why not consider our Luxembourg-based alternative investment fund Phocus1?
In summary: Key benefits of investing in Luxembourg
– Economic stability: Low public debt (27.5% of GDP), ensuring strong financial security.
– Leading financial hub: #1 in Europe, #5 globally, attracting international capital.
– Diversified investments: A wide range of secure assets, including life insurance and private equity.
– Attractive tax and regulatory framework: Enhanced protection for investors and optimized fiscal policies.
What are the best investment opportunities for good returns in 2025?
Faced with economic and political uncertainties in countries like France—characterized by high tax pressure and market volatility—investors need to seek investments that balance security and profitability. Below are several secure investment options suited to various investor profiles.
• Life Insurance Investments
Life insurance remains a top choice for many French investors due to its flexibility and tax advantages. There are three main types:
– Euro Funds: Capital is guaranteed, but returns often fall below inflation after taxes.
– Unit-Linked Accounts: Invested in the stock market with potentially high returns but no capital guarantee.
– Multi-Support Contracts: A mix of euro funds and unit-linked investments to diversify portfolios while managing risk.
Why choose life insurance in Luxembourg?
Luxembourg offers enhanced protection through its triangle of security, ensuring asset segregation and better capital protection.
• Multi-Support Life Insurance
Multi-support life insurance allows for a balanced investment between secure funds and dynamic market placements. This type of contract provides:
– Capital floor guarantee to limit losses during market downturns.
– Optimized taxation, with inheritance tax exemptions of up to €152,500.
– Wealth management flexibility, ideal for long-term investments (recommended minimum of €200,000).
For example, an investment of €500,000 can generate significant interest and be passed on to beneficiaries with notable tax benefits.
• Real Estate Investment Companies (SCPI)
Invest in SCPI starting at €200,000? SCPIs (Sociétés Civiles de Placement Immobilier) allow investors to diversify into real estate without the direct management burden, offering annual returns of 3% to 5%. Key types of SCPIs include:
– Yield SCPIs: Generate regular income from professional property rentals.
– Tax SCPIs: Focus on residential real estate to benefit from tax incentives (e.g., Pinel, Malraux laws).
– Buy-and-Sell SCPIs: Acquire, renovate, and resell properties for attractive capital gains.
• Rental Real Estate
Rental real estate remains popular as it is backed by a tangible asset. However, profitability is impacted by various constraints, such as:
– Rent controls, which limit potential returns.
– Rental period caps, affecting management flexibility.
– Non-payment risks, which may increase legal and administrative costs.
Investing in new properties offers tax advantages like reduced notary fees and income tax reductions (6% to 21% with the Pinel law). On the other hand, older properties are generally 20% to 25% cheaper and can yield net returns of 2.5% to 7%, though renovation and compliance costs may affect overall profitability.
Current regulations have led many owners to sell properties requiring upgrades, presenting potential opportunities in certain regions.
• Private Equity
Private equity, or capital investment, involves investing in non-listed companies. While it offers high return potential, a strategic approach is essential to manage risks.
How to succeed in private equity investment?
1. Choose the right management firm: Work with proven asset managers.
2. Select the company size: Investment opportunities fall into categories such as:
- Venture capital: Funding for promising startups.
- Growth capital: Supporting established companies’ expansion.
- Buyout capital: Acquiring companies undergoing ownership transitions.
3. Diversify your investments: Collaborate with financial investment advisors (CIF) to spread risks across sectors and companies.
4. Invest in vintage funds: These funds launch annual portfolios, distributing risks over time and stabilizing returns across economic cycles.
Private Equity success is often measured by vintage year performance, allowing for long-term tracking of profitability.
Which is the most profitable investment between liquid savings and bonds?
Liquid savings, through current accounts, savings accounts (such as the Livret A or youth savings accounts), provide immediate access to funds. While offering optimal security, their returns are often lower than inflation, resulting in a gradual loss of purchasing power. Therefore, although these options are ideal for short-term liquidity, they do not significantly contribute to wealth growth.
Bonds, on the other hand, are debt securities issued by governments, corporations, or local authorities. They offer potentially higher returns but come with risk: in the event of the issuer’s default, the creditor may not recover the full capital. Typically, the higher the interest rate, the greater the risk. To mitigate this risk, investors are advised to choose bonds with moderate coupons issued by financially stable entities.
The choice between liquid savings and bonds depends on the investor’s profile:
– For security and immediate availability, liquid savings remain the best option.
– For higher returns, with a willingness to accept some risk, bonds can be an attractive alternative.
In summary, liquid savings ensure security and flexibility, while bonds offer access to higher returns with controlled risk, provided there is a rigorous selection of issuers.
How to achieve a return of >10% in 2024?
Achieving a 10% return requires identifying high-performing investments suited to your investor profile. Return measures the profitability of an investment and is calculated based on the income generated relative to the invested capital. The calculation method varies depending on the type of investment:
– Stocks: Return is determined by the ratio of the annual dividend to the stock price, plus potential capital gains.
Formula: (Annual Dividend / Stock Price) × 100
– Real Estate: Rental yield is calculated by factoring in annual rental income, the purchase price, and operating costs (e.g., taxes, maintenance).
Formula: (Total Annual Rent / (Purchase Price + Operating Expenses)) × 100
– Financial Investments: Profitability is assessed by comparing the initial capital with the final amount received, after deducting management and entry fees.
Formula: (Amount Received / Amount Invested) × 100
On average, high-yield stocks offer dividends above or around 6%, which is still below the 10% target.
To achieve higher returns, alternative investment options such as currency trading, private equity, or structured financial products may provide opportunities, although these often come with higher risk and require expert management and diversification strategies.
Which investment offers the highest returns in 2025?
Certain investments can yield significant gains, though it’s important to remember that higher returns come with increased risk, and capital is never fully guaranteed. Here’s an overview of the most profitable investment options in 2025.
Structured Products
Structured products, such as mutual funds (OPCVM), can deliver annual returns of up to 9%. These are attractive for investors seeking high-performance investments, as they provide tools to manage volatility and uncertainty.
Real Estate Development Companies
Investing in real estate development funds, accessible from €150,000, involves participating in projects focused on buying, renovating, and reselling properties. Often structured as private equity funds (FPCI), these investments target annual returns of 9% to 10% over several years.
International Real Estate
Investing in foreign real estate markets can offer attractive returns, particularly in emerging or less saturated markets compared to domestic options.
Life Insurance & Private Equity
Investments in unit-linked life insurance and private equity provide opportunities for diversification and higher returns. However, these options come with higher risk levels and require careful selection of investment managers and strategies.
Options
Options are ideal for experienced investors looking to speculate on market movements. By purchasing a call (betting on a price increase) or put (betting on a price decrease), investors can leverage high multipliers. However, options are highly speculative, and potential losses can be significant.
Cryptocurrencies
Cryptocurrencies offer the potential for exceptionally high short-term returns but are extremely volatile and risky. As of late 2024, Bitcoin reached an all-time high, surpassing $100,000. While crypto offers rapid transactions and opportunities, values can fluctuate wildly, posing risks to capital.
Socially Responsible Investments (SRI)
SRI funds integrate environmental, social, and governance (ESG) criteria, allowing investors to combine sustainability with financial performance. These funds are offered by banks, insurers, and financial advisors. They can be structured as stock accounts, PEA, or unit-linked life insurance policies.
Before investing in SRI, it’s crucial to understand the fund’s strategy, which may apply to all or part of the portfolio. Some funds exclude companies that do not meet basic social or environmental standards, while others focus on thematic investments (e.g., renewable energy).
Emerging Markets
Investing in emerging markets can present high-growth opportunities. According to a 2019 IMF report, emerging economies experienced growth of 4%, compared to 2% in developed countries. Investors can track performance through indices like the MSCI Emerging Markets Index.
One effective strategy is to invest in ETFs, which aim to replicate the performance of market indices. ETFs offer low-cost diversification, making them attractive for investing in emerging economies. However, fluctuations in emerging market currencies can create instability. Currency devaluation may offset stock market gains, which is an important risk to consider when investing in these markets.
In summary, various investment options such as structured products, real estate funds, life insurance, and ETFs provide high-return opportunities in 2025. However, achieving these returns requires a clear understanding of risk management, market trends, and diversification strategies.
« As a direct investor in the currency market for several years, I decided to create Phocus1 in 2019 to offer clients of my retirement consulting firm, EOR, the opportunity to boost their pensions alongside me »
Interested? I invite you to join our next meeting.
